Sheepmeat future explored

Press, 2 May 1984, Page 31

Sheepmeat future explored

Costs must be contained if the sheepmeat industry is to survive, the chairman of the Meat Board, Mr Adam Begg, told a meeting of 140 sheepfarmers in Ashburton. The meeting, one of about 50 organised throughout New Zealand by the board, was to explain marketing developments and the proposed marketing pool for next season.

Mr Begg said that the increase in costs to farmers was reflected in the need for bigger flocks. During the 19405, about 700 to 800 ewes was considered an economic unit; today 2000 or more were needed. He believed that the limit had been reached and now processing, transport, and distribution costs had to be contained. He cited the United States sheepmeat industry as an example. From a national flock of 50 million a few years ago, the total was now about 12 million, with one big company after another having to close.

New Zealand had been protected through the supplementary minimum price scheme, he said. In the long term, Mr Begg was optimistic about the future of lamb exports.

This year he expected the board to clear the backlog of sheepmeats from the previous season, and during the next two or three years it would try to “spread the risks” rather than rely on

single big markets. But he was not so optimistic about mutton, which he said was now just a residual product of lamb production. Its future depended more than anything else on the cost structure.

After the meeting, Mr Begg said he was not concerned about the latest interruption to the mutton trade with the Soviet Union. The Russians had objected to a shipment of mutton because it had been frozen for more than 90 days. At present it is being inspected by them before being accepted, he said.

Mr Begg said that it had happened before. It was unlikely mutton could be bought anywhere that had not been frozen for as long as that.

Properly frozen, the meat’s quality did not deteriorate over a much longer period, and if the Russians required, the board would invite their technicians here to inspect the system.